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Dow rises in excess of 200 points, hits record high as Wall Street kicks off last week of 2020

 Stocks traded higher on Monday in front of the final trading week of 2020 and as President Donald Trump unexpectedly signed an economic help bill.

The Dow Jones Industrial Average jumped 207 points, or maybe 0.7 %. The S&P 500 climbed 0.7 %, and the Nasdaq Composite rose 0.6 %. All three major indexes hit record highs at the open.

President Donald Trump signed a $900 billion Covid-19 relief bill into law, averting a government shutdown and extending unemployment benefits to millions of Americans. The signing came many days after Trump suggested he would veto the legislation, demanding $2,000 direct payments to Americans, instead of $600.

All the bluster neither significantly changed to perspective for stocks, as markets still expected (and eventually received) stimulus of a minimum of $900 billion to pass, wrote Tom Essaye, founding father of The Sevens Report.

The 5 pillars of the rally (Federal stimulus, FOMC stimulus, vaccine rollout, divided government and no double dip-recession) re-main mainly in place, and until that changes, longer term perspective and the moderate for stocks will be good, Essaye included.

Apple led the Dow higher, rising 2.5 %. Tech & components were the best-performing sectors in the S&P 500, gaining 0.9 % along with 0.8 %, respectively.

Wall Street is actually coming off a peaceful holiday week wherein the main averages were level. The S&P 500 fell 0.2 % last week as several investors got the chips off to the year end. The 30-stock Dow eked out a 0.1 % gain for the very same period.

Profit-taking might possibly ramp up in the last week of the season, which has thus far seen astonishingly good returns. The S&P 500 has acquired 15.4 % year to date, although the Dow has climbed 6.4 %. The Nasdaq has soared 43.2 % this year as investors favored high growth technology labels while in the continuing Covid-19 pandemic.

Dr. Anthony Fauci warned on Sunday that the country may see a surge in new Covid-19 infections after Christmas along with New Year’s celebrations. 2 vaccines by Moderna and Pfizer have started the distribution process this month. So much more than one million folks in the U.S. are vaccinated.

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